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The following is annual financial information for a cell phone repair company that has hired you to conduct some pricing analysis for them. Take this information to answer the following questions. Be sure to show your work:

Total Number of repairs……………. 3,500

Average price for repairs……………. $200

Variable cost for repairs……………… $50

Fixed cost…………………………. $300,000

A – Calculate the current contribution margin (1 point)

B – Calculate the current breakeven point. (1 point)

C- Calculate the unit cost. (1 point)

D- Calculate the price at a 20% markup of unit cost. (1 point)

E – Assume number of repairs increased to 4,550 at the 20% markup price calculated above.

– Calculate price elasticity of demand. (1 point)

F – If the company wants to raise the original price by 20%, what would the new price be? (1 point)